WATER SUPPLY PLANNING COMMITTEE

ITEM:		ACTION ITEM
3.	DEVELOP RECOMMENDATION TO THE BOARD OF DIRECTORS ON POTENTIAL COST SHARING WITH SOQUEL CREEK WATER DISTRICT FOR THIRD PARTY REVIEW OF DEEPWATER DESAL COSTS
Meeting Date:			April 18, 2014	Budgeted:	Yes
From:			David J. Stoldt, General Manager	Program/	Alternative Desal Project
				Line Item No.:	1-11-1
Prepared By:			David J. Stoldt	Cost Estimate:	Ongoing; Not to exceed $15,000
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

SUMMARY: At its March 18, 2013 meeting the Board directed staff to enter into further negotiations with DeepWater Desal to establish a cost-sharing relationship for the environmental and permitting work necessary to advance that project as an alternative to the Cal-Am proposal. Such a contract was developed and approved by the Board at its July 2013 meeting. Costs are being reimbursed by the District for such purposes.

In February, District personal attended a presentation by DeepWater Desal which was attended by many public agencies and water companies from the Monterey Bay area where the cost-per-acre-foot of water was discussed. The District commented that such costs appeared attractive, but would all would be better served if a third party review was conducted. The District was approached in March by Soquel Creek Water District to consider sharing costs for such a review.

The scope of work and cost for Kennedy Jenks consulting firm is attached as Exhibit 3-A. It is estimated that the District’s share will cost $12,400.

RECOMMENDATION: The General Manager recommends that the Committee recommend the Board should agree to cost-sharing with Soquel Creek Water District for the third-party review of costs and cost of water from the DeepWater Desal project.

EXHIBIT

3-A Kennedy Jenks Proposal

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